Mr. Tom Simons reports

CANADIAN ENERGY SERVICES & TECHNOLOGY CORP. ANNOUNCES ACQUISITION OF SOUTHWEST TREATING PRODUCTS, LLC

Canadian Energy Services & Technology Corp. has entered into an agreement to acquire all of the production and specialty chemical business assets of Southwest Treating Products LLC. The acquisition of Southwest will accelerate the expansion of company's U.S. production and specialty chemicals operations into the West Texas Permian basin and the Eagle Ford shale in south Texas through its wholly owned subsidiary Jacam Chemicals 2013 LLC. The effective date of the transaction is Sept. 1, 2014, with closing expected to occur on or about Sept. 5, 2014. Consistent with previous acquisitions completed by CES, consideration will be a combination of cash and CES common shares escrowed over a three-year period. In addition key employees have agreed to employment contracts along with non-compete and non-solicit commitments. Established in 2006, and headquartered in Sonora, Tex., Southwest is a West Texas-based private production and specialty chemical company that provides production and specialty chemical solutions for a number of leading oil and natural gas companies.

"We are acquiring an established West Texas-based production and specialty chemicals company, with experienced management, great customers, and excellent production and specialty chemicals sales, technical and field personnel," said Tom Simons, president and chief executive officer of Canadian Energy Services. "Paul Stephens, the founder of Southwest, is a professional chemist and has built the Southwest brand in Texas by employing our same philosophy of using science to solve problems. We see many opportunities and synergies as we combine Southwest with our Jacam operations."

"We are excited to be joining CES, a leading oil field consumable chemical company in North America," said Mr. Stephens. "The combination of our team, our customer relationships in Texas and our expertise, together with Jacam's unique product offerings and manufacturing capabilities, will be a powerful partnership for growth."

Strategic rationale of the acquisition

Southwest will be integrated into and operate as part of the company's Jacam division under the brand Jacam Southwest.

Its addition is expected to expand Canadian Energy Services' position as a growing provider of production and specialty chemicals in Texas.

Canadian Energy Services will add Southwest's blending and distribution facility located in Sonora, Tex., as well as three other Texas stock points. Canadian Energy Services will also add Southwest's key field, technical and sales-focused employees, expanding Jacam's capabilities to effectively reach and service customers into Texas.

Management of Canadian Energy Services expects the Southwest acquisition to be accretive to Canadian Energy Services' cash flow from operations, EBITDAC (defined as net income before interest, taxes, depreciation and amortization, gains and losses on disposal of assets, goodwill impairment, unrealized foreign exchange gains and losses, unrealized derivative gains and losses, and stock-based compensation) and net income.

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